Which statement is correct?
The use of one set of accounting standards by companies throughout the world:
A) makes it more difficult for comparability and transparency of financial information.
B) leads to inefficiency in lending markets.
C) reduces the cost of preparing financial reports.
D) reduces the quality of information provided to capital market participants.

Question

Quizplus · Accepted Answer

If companies worldwide use the same set of accounting standards, they can reduce the cost of preparing financial reports. This is because they no longer need to spend resources to comply with different accounting standards in different jurisdictions. This can also streamline processes and make it easier for companies to expand globally.

Which Statement Is Correct